Honda Motor has delayed its planned $15bn electric vehicle (EV) battery and assembly facility in Ontario by approximately two years, citing slowing EV demand and tariff impacts, as reported by Reuters .

Among the major government-backed EV-making investments announced in the past few years, Honda’s stands to be both the biggest and the best value from a Canadian perspective

Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.

During the announcement of its 2024-2025 fiscal year financial results on May 13, Honda CEO Toshihiro Mibe stated that in the current fiscal year, which began on April 1 and will end on March 31 next year, Honda expects the impact of the Trump Administration’s tariff policy to hammer 650 billion yen (~$4.34 billion) off its operating profits.

The development won’t affect jobs at Honda’s Alliston, Ont., plant, but it comes at a turbulent for the province’s automotive industry

Ontario Premier Ford is vowing to hold auto companies that pull out from Ontario "accountable" after news that Honda announced it is putting a major electric vehicle supply chain planned for the province on hold.

Slowing demand for EVs and US tariffs impact on Canada’s auto sector force the Japanese automaker to postpone plans for an EV supply chain in Ontario, dealing a severe blow to Canadian EV ambitions.

Honda announced the postponement on Tuesday after forecasting a 59 per cent profit decline in the current fiscal year.